Charlie Corporation (the Company) prepares its financial statements in accordance with US GAAP and files its...
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Charlie Corporation (the Company) prepares its financial statements in accordance with US GAAP and files its C Corporation income tax return on an accrual basis using a calendar year end. The Company files a South Carolina tax return, where the corporate tax rate is 8% and a federal return where the rate is 21%. The Company's 2022 trial balance follows. Charlie Corporation Trial Balance 12.31.22 Cash Accounts receivable Equipment Accumulated depreciation Accounts payable Unpaid wages Preferred stock (non cummulative) Retained earnings Sales Non taxable life insurance proceeds Cost of revenues Salaries and wages Other deductions Depreciation Debits Credits 862,000 600,000 500,000 100,000 75,000 25,000 1,000,000 3,512,000 100,000 2,500,000 200,000 50,000 100,000 4,812,000 4,812,000 Additional Information The Company's 2022 tax depreciation totaled $500,000. Required Compute the Company's total (current and deferred) income tax expense for 2022. Compute the Company's effective income tax rate. Reconcile the Company's statutory rate (21%) to its effective income tax rate. Charlie Corporation (the Company) prepares its financial statements in accordance with US GAAP and files its C Corporation income tax return on an accrual basis using a calendar year end. The Company files a South Carolina tax return, where the corporate tax rate is 8% and a federal return where the rate is 21%. The Company's 2022 trial balance follows. Charlie Corporation Trial Balance 12.31.22 Cash Accounts receivable Equipment Accumulated depreciation Accounts payable Unpaid wages Preferred stock (non cummulative) Retained earnings Sales Non taxable life insurance proceeds Cost of revenues Salaries and wages Other deductions Depreciation Debits Credits 862,000 600,000 500,000 100,000 75,000 25,000 1,000,000 3,512,000 100,000 2,500,000 200,000 50,000 100,000 4,812,000 4,812,000 Additional Information The Company's 2022 tax depreciation totaled $500,000. Required Compute the Company's total (current and deferred) income tax expense for 2022. Compute the Company's effective income tax rate. Reconcile the Company's statutory rate (21%) to its effective income tax rate.
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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